The Hyperbolic Consumption Model: Calibration, Simulation, and Empirical Evaluation

By George-Marios Angeletos, David Laibson, A. Repetto, Jeremy Tobacman, Stephen Weinberg. 2001

961 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/bf1d9ea37c551b8df803ff294efaf0e842f17f53

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Economics and Econometrics

Citations in the corpus

Temptation and Taxation (2005, neutral): “Wt(k) = max k′≤f(k) {u(f(k)− k′) + δWt+1(k) + Vt+1(k, k′)} − max k̃′≤f(k) {Vt+1(k, k̃′)}, (3)”
Tax incidence when individuals are time-inconsistent: the case of cigarette excise taxes (2004, positive): “For example, Angeletos et al. (2001) show that a hyperbolic discounting model fits observed consumption and savings patterns much better than an exponential one; in particular, the pattern of high illiquid wealth holdings (e.g.”
Contract Design and Self-Control: Theory and Evidence (2004, positive): “For benefits b in the range $20-$100, this implies a calibrated β in the range .7-.95, comparable to the estimates in the literature (Angeletos et al., 2001; Paserman, 2003).”
The Liquid Hand-to-Mouth: Evidence from Personal Finance Management Software (2018, positive): “Angeletos et al. (2001) and Laibson et al. (2003) show that households with hyperbolic-discounting preferences optimally decide to lock their wealth in the illiquid asset in order to cope with self-control problems.”
The Effect of Dividends on Consumption (2007, neutral): “9 A closely related, but behavioral, explanation for the high propensity to consume current income is hyperbolic discounting as in Angeletos et al. (2001).”
Welfare Payments and Crime (2011, neutral): “…needs and for engaging in activities that incapacitate them 2 Phelps and Pollak (1968) develop a simple framework of short-run impatience, and this framework is employed by Laibson (1997), O’Donoghue and Rabin (1999, 2001), and Angeletos et al. (2001) to consider a variety of economic applications.”
Behavioral Economics and Public Policy: A Pragmatic Perspective (2015, positive): “For example, Angeletos et al. (2001) calibrate Laibson’s β−δ model using consumption data and show that individuals exhibit substantial presentbias when making savings decisions, calling for policies to increase savings rates such as those discussed in Section II.”
What Would You Do with $500? Spending Responses to Gains, Losses, News, and Loans (2018, positive): “For example, the model of temptation and selfcontrol in Gul and Pesendorfer (2001) and Kovacs and Moran (2017), or the model of quasi-hyperbolic discounting in Angeletos et al. (2001), typically generate higher MPCs to gains of all sizes than models that abstract from these features.”